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Weighed down by outrageous debts, life begins to fade, losing a bit of its luster. That’s no way to make it through our time here, day by day. Thankfully, we’ve gathered a few resources to show you what options are available.
Negotiating With Creditors
You can always try to call your creditors and ask them for some lenience. If your story is compelling, many of them offer forbearance programs. These let you defer payments without dinging your credit, relieving a little pressure.
Some creditors may not be willing to negotiate with you, though. If that’s the case, there’s not much you can do with them on the phone. You’ll have to figure out another way to handle what you owe them.
Debt Consolidation
Debt consolidation is a game-changer for those struggling with debt. Just check out debt consolidation in Calgary Alberta, or run a quick google search to connect with experts in your area.
By taking out a debt consolidation loan, you can leverage credit to lessen your burden. Typically, they’re made to take multiple accounts and put them in one payment.
Better yet, they’ve designed them to reduce the monthly payments by extending terms. Some of them even offer lower interest rates, lowering the payment further.
One of the best things about them is how they benefit your credit. Not only do they avoid leaving a negative mark, but they also improve your credit mix. So, you may see a boost to your score after getting one of them. Make sure to use it and pay any debts right away. Otherwise, your situation could become worse if the money was all wasted. Using it immediately to pay debt should remove any temptation, though.
A Managed Payment Plan
Has your family wracked up mountains of credit card debt, spread among several cards? If so, a managed payment plan could be a smart move. They’re instruments designed by credit counseling agencies to simplify repayments. Usually, they’ll give you a single payment to cover everything on your credit report. Best of all, they’re likely going to offer a lower interest rate than what’s on your cards.
Debt Settlement
Settlement is when a company decides it’d like to strike a deal with you. If you’re unable to repay them entirely, settlement could be a way out. Usually, it’s best to work with a professional debt counselor. They’ve helped many settle debts, so they’re plenty experienced.
However, it’s possible to call your creditors and speak to them yourself. Just make sure you’re prepared by reading up on consumer protection laws. When they’re on the phone, try offering a lump sum to close out the account. Sometimes, they’ll accept, letting you off the hook for less than what’s owed.
Bankruptcy
The first thing that comes to mind when talking about debt relief is bankruptcy. In the US, consumer protection laws offer a few ways to escape debt through bankruptcy.
As an individual, you’ll have the option to file either chapter 7 or 13. They’re different programs, even though both relieve debt. However, either will have long-term negative impacts on your credit. So, the decision as to whether it’s a good idea is not one to be taken lightly.
Chapter 7 bankruptcies erase nearly all your debts, gone forever. This is an amazing relief if you’re under overwhelming pressure. By declaring bankruptcy, you could start over with a blank slate again. But, they’ve created strict requirements to limit how many qualify.
Your income must be within a certain range of the median in your zip code. Also, you must prove the debts aren’t something you can handle without bankruptcy.
Chapter 13 bankruptcy isn’t as difficult to qualify, but your debts stick around. They’re organized into a trust managed by the courts. Then, you’re given 3 to 5 years to repay everything. After that time has passed, your debt-free finally.
Conclusion
Debt doesn’t have to be what wakes you up in the morning. If yours has grown that bad, it’s time to do something about it. Debt relief is a way to regain control and take charge of your life again. All it takes is a few moments. Then, things will start getting better again.